Bitcoin shows after the interest decision of the Fed promising ascent potential: mood
Bitcoin shows after the interest decision of the Fed promising ascent potential: mood
Santiment-a intelligence platform for cryptoma markets-has an optimistic view of Bitcoin after the Federal Reserve increased its key interest rate by another 25 basis points on Wednesday.
In a subsequent blog post, the company claimed that the top crypto shows "a promising ascent potential"-especially since its correlation becomes weaker.
What's next for Bitcoin?
in his latest Insurance report said that the first reaction of the market to the interest decision was a relief-glad that the expected hike was "over" until the next decision in June.
Some positive signs are that Bitcoin has risen by modest 2 % since the FOMC announcement on Wednesday, and an increased trading volume for assets with the highest market capitalization. These top-assets are also missing "consistently extreme shorts"-not even on Binance Coindie in the past month after the exchange was short-circuited sued of US supervisory authorities.
In addition, Wednesday has had the highest commercial activity with bitcoin addresses for two weeks, whereby the active addresses pushed up immediately after the rate increase.
"This was the day with the highest address activity for two weeks, and the day two weeks ago was mainly credited to which the dealers reacted," said Santiment. "This rally seemed to be much more related to the fact that the interest rate increase was finally official, and you can see how the active addresses went even further after the announcement."
Bitcoin, stocks and gold
During the target interest rate of the Federal Reserve now fluctuates at relatively high 5 %-5.25 %, this may not be so big problem, since the correlation of Bitcoin with shares-which react strongly to central bank activities-further wanes. As Santiment stated, the modest reaction of Bitcoin on Wednesday stood in a sharp contrast to his movements after similar interest increases in 2022, which drove Bitcoin and stocks alike at multi -year lows.
"It is important to assess how speculation about how today's FED decision would end up with the actual effects of the foreseeable decision of the FED," added Santiment.
Since the collapse of the Silicon Valley Bank in May, the correlation of Bitcoin into shares has dropped sharply, while its correlation to gold has increased at the same time. Bitcoin and gold were often compared as non-state, safe systems that are immune to devaluation of the Fiat currency and are protected from the problems of the modern banking system.
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